Posted on: June 28, 2021

Lauren Hardy will be with one of her Virtual Investing Mastery students, Jason Quero, a former real estate broker and a newcomer to the wholesaling market.

In this episode, Jason will share the difficulties securing deals in South Florida and how associating with Lauren has improved his virtual marketing strategy that amplified more deals. From having no leads to securing more than two deals a month.

Key Takeaways

  •  On investing in a coaching program
  •  Saturated real estate properties in major metros
  • The more you call, the more you make deals
  • The relevance of Lauren’s script for qualifying sellers
  • Negotiation and Fallouts in pricing
  • On establishing a good relationship with sellers
  • The importance of consistent communication

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Episode Transcription

Lauren:
You are listening to wholesaling, Inc. And this is Lauren Hardy. What’s up Rhino Tribe. Today, we have Jason Kara with me. He is one of my virtual investing mastery students, and we are going to talk about Jason’s adventures and going virtual with me. Jason, welcome to the show.

Jason:
Thank you. Thank you. Thank you for having me, Lauren.

Lauren:
I am glad that we finally got to do this because you are one of my more enthusiastic students that participates a lot and is so fun. You bring such a great energy to the group, and I know that you are going to bring so much energy to this show. So I’m excited to have you. Guys, listen up, I know Jason’s going to share a lot. So Jason, I know we have a lot to cover. You are newer to wholesaling so tell me a little bit about you. Where do you live family life? Do you have another job? Tell me about you.

Jason:
Yes, for sure. Thanks for asking. Well, I actually am here in the, I guess you would call it the South Florida area, I’m in Palm Beach County with a very, very small family. You could say a significant other, a 17 year old and now a two month old. Actually I was calling you the day that I was trying to close a deal as my girlfriend was giving birth hours later, I’m trying to negotiate a deal which was pretty…

Lauren:
No way, I didn’t know that. So wait, you have a 17 year old and a two month old?

Jason:
Two months old.

Lauren:
No, I had no idea. Okay. Okay.

Jason:
Actually, just to bring it all the way to the beginning. My background is in real estate, I’ve been a real estate broker for just under 16 years. And the frustrating part that I actually had with the business was that over the years, I felt as though the actual marketing piece and let’s face it, the commission piece was actually getting smaller and smaller and just as competitive, especially in the South Florida area. The freedom and the flexibility of the business was always there in terms of real estate. I love real estate, but I knew that at the end of the day, my higher purpose you can call it, was actually the niche of wholesaling, which is getting involved and actually being able to take properties and specific scenarios and sellers and what have you and say, “Hey, listen, I’ve got a solution and I can make it happen. I just need a smidge of time and we can get this deal done.”
And that’s actually what interested me in wholesaling while I was doing real estate. Working from home and then juggling two kids, I had a connection with you when I was doing just a little bit of research. I’m like, “YouTube university only got me so far.”

Lauren:
Right.

Jason:
And I felt as though I had a gazillion pieces, did not have the map. And I was like, “Where’s the map? Where is the map?” And I thought that the map would be in my backyard. The map is in my backyard, but I didn’t have the pockets, the deep pockets I should say, marketing wise to sustain waiting four or five or six months to try to close the whale of a deal as you call it. So then I’m like, “Well, this can be done. I’m hearing that people are doing this out of the state, out of the area.” You popped up and between you and your two girls, I said, “Oh, I found it.” And I’m going to tell you something, Lauren, the investment was a little, like anything else, was a little scary, but you definitely make a point of hitting home early on that you are going to recruit that and then some, if you follow the plan. So I want to thank you for that. That was big.

Lauren:
I think people need to hear that. I try to say that in welcome calls a lot, because I know I, so I still buy into education. I just bought a course on YouTube video creation. So I’m still buying education. When I was getting started in wholesaling investing, I was buying a course at least every year, sometimes two courses a year. And these were five, 10,000, some were like $25,000 mastermind programs. So it’s very important for me, when I was giving my credit card information to know that I am going to make this back, I am. And every time I did, I did, I made it back. I learned something from that coaching program that I can attribute to bringing me a deal and I made the money back, I made my investment back. So I always like to let everybody know, “If you follow the instructions, you will make it back.”

Jason:
If you do not deviate from the course and go in blindly knowing nothing. I think you mentioned conservatively, give yourself 90 days, anything before 90 days, pat yourself on the back, you got a little luck.

Lauren:
You got lucky.

Jason:
But really after the 90th day, if you’ve done everything and you can take an honest account of your actions, you’re going to get a deal.

Lauren:
Yeah. Yeah. Every time. It’s crazy. Yeah. And so what was it like getting started? So you had real estate, real estate was not new to you being a broker. And I always say, so the reason I am not into that side of things like residential real estate was because I felt like every time you got a new listing, you got a new boss.

Jason:
You couldn’t be more right. You can say that we’re still working for someone at the end of the day. When you realize that you really are taking action into your own hands of being your own boss, you look at the decisions that you make and how you deal with people in such a way that you think, “Well, people are going to do business with people that they like, therefore I need to be nicer on the phone. I need to present what I’m trying to do and connect with those people, because then at the end of the day, that’s when you have a huge pipeline of people that they may not call you the first day or the first month, but if you follow the program and all of a sudden a good followup plan, you’ve got a ton of people calling you back at different times.”

Lauren:
Mm-hmm (affirmative). And being the investor in the transaction versus the realtor, that side of the business versus wholesaling or being an investor, there is a bit of more control. You can kind of control the transaction. You’re like, “Hey, I’m the one with the money. So this is the way it’s going to go.” And the more deals you do, the more control, the more you lay it down. And you’re like, “This is how it’s going to go.” And that’s nice. That’s a nice feeling. Whereas when you’re a realtor that owner who owns the home, they can get abusive.

Jason:
And you know what I think? I think in their defense as well, if you take the average homeowner somewhere in the age of between 40, and let’s just say 65 years old, I guarantee you that they’ve only bought and sold if they’re lucky, maybe five or six homes. So they’re going to be skittish on how they want things because they’re trying to control it. And meanwhile, us being the professionals or having a background in real estate, where last year I might’ve done 50 or 60 deals, it’s so easy to see almost matrix how these things starting to unfold, where you think, “No, it would be better if we did this, it would be better if we closed during this period because you’ve got this.” You can see the pieces unravel a lot better and honestly be compensated a lot better than you would be if you were just a real estate agent.

Lauren:
Right. So let’s get to the steps you took to going from real estate broker to now I want to try to do some wholesaling. What were the first steps in that process? Let’s start with just how you got your education at first.

Jason:
Right. Well, when I had first started out, like everybody else, I had been spending I would say anywhere from two to maybe three hours in drive time, listening to various podcasts and YouTube shows regarding wholesaling. And most of what was being spoken about, I had the grassroots understanding and knowledge. I didn’t have the system of how to implement it. And I thought to myself, “If I could figure out how to put it together, then wholesaling isn’t that difficult. It’s already what I’m doing now. Only I’m putting my neck out there to do the deal myself.” So that motivated me more so than working for the individual seller or buyer that would may or may not purchase something in this lifetime. So that was the catalyst to say, “I still love real estate. It’s still a great business. How can I sink my teeth into something meaty that would give me more control over my future?” And that’s how I came into wholesale more full time.

Lauren:
So then you were listening to podcasts and probably some YouTube university. And did you give it a shot on your own without mentorship?

Jason:
Completely. Completely.

Lauren:
Okay. So tell us about that. Tell us about round one.

Jason:
Oh God. Thank God, it was only round one, which is, I started using one of the platforms for the direct mail pieces where I think it’s called Deal Machine, driving for dollars, which I’ve spoken to you about that more than one occasion. Because when I started out, I’m laughing because I thought to myself, “I probably spend 20, 30, maybe 40 hours over the course of a couple of weeks saying, ‘All right, this must be it.'” Well, by the second 40 hours of driving around thinking to myself, it was more of a passive way of getting deals, I thought to myself, “How do I even know that they would consider.” I’m literally plucking a needle in the haystack trying to find someone that’s going to give me a call because I sent them a postcard.

Lauren:
Right. And what market, by the way, where are you doing this in?

Jason:
Right in my backyard where the average sale price is 275,000, 325,000. They’re like, “Sorry, we’re not giving the house away. We’re not that desperate we could put it on the market, this is Florida.” So thousands of dollars later and hundreds of hours of driving and gas and frustration, I was like, “There’s got to be another way. This is not the way that everyone’s starting out.” It corralled me into getting more focused with some sort of mentor or some sort of coach. And that’s where we rolled into or how I came across you or that program.

Lauren:
Yeah. So did you have an idea that you needed to go virtual before you saw me?

Jason:
I had a gut feeling because I was just thinking as a seller, myself thinking, “Why would I sell my property at below market value? All right. If I’m a hoarder, if I’m in probate, if I’m going through a bad divorce, I get that. But where can I amplify that?” And it wasn’t in this area. It was too saturated.

Lauren:
Mm-hmm (affirmative) there’s too much demand in your area.

Jason:
Way too much demand. Way too much demand. And not to say that it still can’t be done. I think my own personal opinion is you need deeper marketing pockets because it’s got a lot, it’s not going to be 90 days. I think it’s going to be maybe 180 days. So not to say I’ve given up on Florida, but I’m happy with my market. I’m happy that there’s more deals flowing on a monthly basis versus just maybe one deal a month. That’s too much for me also. It gives me too much anxiety waiting for one deal.

Lauren:
Right, yeah. So I think anybody could resonate because I hearing this a lot with the major metros. Real estate is just bananas all throughout the country right now, prices are up there. But especially in the major metros or in areas where say the average house price is above 250,000, it’s very saturated with not just wholesalers, not just house flippers, not just hedge funds. Also, people that just want to buy a house.

Jason:
Consumer, right. Correct.

Lauren:
Yeah, consumers, that just want to buy a house to live there. So it makes more sense while it’s so saturated in your major metro to go virtual to an area that maybe has a little bit more distress. And usually those are areas where the average house price is lower, maybe the sub 200,000 and below market. And then when the market’s always turning, but if you feel like you’re hearing it in the sellers voice, that sellers are a little bit more motivated in Florida where you’re from, then you can come back and you do it in your backyard and you have your virtual market.

Jason:
Yeah. I would say that is definitely the goal. But I will say that with being in, I wouldn’t call it a tertiary market or secondary market, but a market that’s under 200,000. What I have learned or noticed is that the amount of passive income that these sellers are getting rent wise for their property, I’m so dumbfounded. Where, as an example, I spoke to a couple of the other day that they had $100,000 property, free and clear that they were making $13, $1400 a month. I told them, “Sorry, I wouldn’t sell it in good conscious, unless you want to sell it at X amount, don’t sell it.” And let me tell you something, they were so appreciative of how honest I was, where I said to them, “Well, what does this property serve for you?”
And they said, “Well, it’s a great source of passive income for us. We don’t really need to sell it, but we were considering it. We don’t have any real sort of income coming in.” I said, “Well, maybe you shouldn’t sell the property because it sounds like you don’t really need to.” And I spoke to them just like, as if they were my parents, I said, “Really? Do you really need to sell it?” It felt better giving them the honesty that versus saying, “Hey, listen, I’ll give you 70,000 or $80,000. I can close tomorrow.” Then I think that they said, “Well, give us a call in a few months, because we have other properties that we might consider selling it. So you never know.

Lauren:
Yeah. You use the Lauren approach of just get the seller to like you and be honest.

Jason:
Jedi mind trick and say, “Hey listen, I’m just being honest with you.”

Lauren:
Yeah. I’m all about just being honest with sellers. Guys, I love to give practical advice and this is definitely something, listen in. When you’re negotiating direct with sellers, honesty is the best policy. If you feel like you are lying or whatever you’re saying feels yucky, it feels like you’re not exactly being straightforward with them, it’s going to show. They’re going to hear it. They’re going to feel it too, just be honest.

Jason:
And those are the deals that I bet you that are never going to get to the closing table anyway, because they’re going to feel this rub, something doesn’t sit, right. A family member says this or that. And then you wonder the fault. Those are your fallout deals, I bet you, on most of them, but they’re like, “Something’s not right.”

Lauren:
Yeah. We are always honest about everything we do. We don’t hide that we’re wholesaling. We don’t hide anything from the sellers. We tell it like from script number one, which, you know my script number one, like we say what we do. Literally in the first paragraph, let me tell you a little bit about who we are, what we do. And we disclose everything that we do, all of our business models. And I have a way of saying it. And if you guys are interested in, by the way, I do give out that script for free. That’s my first script, the seller qualifying script I call it.

Jason:
I remember I literally, the first 30 days of the course, I read the script, breakfast, lunch, and dinner just to ingest it. So that way when I was talking to someone, they felt that it was coming from a place of honesty. The script was so crucial in just being able to speak to the sellers that I bet you, a lot of the students should go back and reread it just to see if their closing conversion increases.

Lauren:
Yeah. No, it’s good. The thing is, it’s like a work of art, but it’s a work of nine years of talking with sellers in the first four years of my business that was straight California. Where at that time, gosh, maybe that time the average house price was maybe 600,000, now it’s like eight, but these sellers were rough. So I would get yelled at, I would get, as soon as I delivered my offer, I would get chewed out. So I learned that from the first conversation, you need to prep them for a low ball and you need to just get them to like you so they don’t yell at you because when I would get yelled at, it would tear me down for the rest of the day. I would be in a downer mode. I would be all depressed and feel bad for like the rest of it. It puts you in a bad mood. I hate rejection, okay? I hate it.

Jason:
Yeah. You have to be able to roll it, because you know that whole 80 20 rule that 80% of the people you’re going to deal with going to shut you down.

Lauren:
Yeah mm-hmm (affirmative). But at least with my script, I feel like I break them down like slowly in increments with it.

Jason:
Yeah, you chip it away.

Lauren:
I chip away at it so then they don’t really, they can’t really come at me that hard because I already told them what I do. I already told them I’m going to low ball them pretty much. And at this point they like me, so then we have a better dialogue and then I feel like I can get somewhere. We’ve got to get to a price that might work for both of us. So you fast forward you got started and now you’ve closed how many deals so far?

Jason:
I’ve got two that would just executed, that on June 4th, they’ll close. And then I’m working always two months ahead so now I’m in the July, August timeframe.

Lauren:
Nice. So now it’s almost like you’re in a two deal a month, you went from zero to now two and then eventually it might even just go from two to five. You’d be surprised, it goes like that. It won’t just be three, it might go to a four or two to a five because some of your older leads will season and then you’ll get one a month that is someone from six months ago. An old follow up.

Jason:
I religiously try to make sure that at least four days a week, that I am texting and three to five days a week that I’m calling. My marketing is texting and calling right now. I’d like to be to a certain degree done with calling and maybe go to another channel. But my background was as a mortgage broker, which then transitioned into real estate and now wholesaling. And I still have that passion for getting on the phone and talking to people. But it is challenging and they used to have this visual where they say, “The phone is your machine gun. If you want to take out the enemy, you have to get on that machine gun and start shooting otherwise no one’s calling you to do deals.”

Lauren:
I wanted to get this statue made, I will eventually, where it’s a phone and it just says, “The more you make, the more you make.” That simple. The more calls you make the more you make. And followup calls included are so important. I was telling that with my team the other day, they’re like, “Oh, the texting platform was down not working.” And I was like, “You have a huge database of people that you could spend an entire shift just calling and making your follow-up calls. Stop trying to just constantly pluck new leads you guys. You have leads, they’re in your CRM if you’ve been putting all of them in your CRM, which you should have been, and call those people up.” Because those people, anybody who one time expressed interest in selling, even if it was a small subtle thought they had, if something is happening in that person’s life, that thought now becomes a thing. And it is like, “Okay, I got to sell this house because now I need money.”

Jason:
And I can’t tell how many times I’ve submitted offers either via text or verbally that I put in some sort of a CRM to follow up with, because what I’m starting to notice now is one of two things, deals are falling apart with their first buyer getting my offer, or they’re saying, “We think we might list it with an agent so I’ve got two agents that I found in the market that I’ve,” listened to this, “I’ve referred them and they close the deal and go figure that they double ended it and they loved me.” They still love me there. They call me at least one or two times every week or so, “Hey, what have you got? Have you got anything that I could bring my buyer by?”

Lauren:
And that’s the next program we are launching with Wholesaling Inc. Is REI Revive with Chris Craddick.

Jason:
Yeah, I’ve heard it.

Lauren:
Yes. And it’s something that I neglected all these years because I didn’t know how to work with agents.

Jason:
Right.

Lauren:
And as soon as I get some time I am having Chris put this piece in my [inaudible 00:22:05] because I need it. So yeah guys REI Revive is awesome. I’ll definitely check that out too. I love the storytelling. I love that in a short amount of time, you’ve already closed two deals. You got two more in the pipe. Could you tell anyone what to expect? From when you started my program and you were taking action, how long to get…

Jason:
I know it exactly to a T. I actually, I took the course the last week of October, the first week of November. And I used the better part of, because I knew it was the holidays and I had a bunch of real estate deals closing, I would say I did a solid 30 to 45 days of just digesting everything. But I knew the second week of January, I would hit it, pardon the expression, balls to the wall.

Lauren:
Right.

Jason:
And January, so then it would’ve taken me, I guess you could say I got lucky because within, under 75 days I got my first deal.

Lauren:
There you go. Okay because I say, I give them a give them 90 days of taking action because you need leads in your system and then the need to season.

Jason:
Yeah.

Lauren:
That’s awesome. So under 75, that’s really good.

Jason:
Yeah, at the right middle end of March I made a… And I will say you did make mention of this and it’s probably worth noting, I had gotten a couple of deals under contract, but then after going through the process, I realized that pricing wasn’t necessarily spot on with pricing and there was fallout when they didn’t want to go through with it. And you have mentioned that before that there will be fallout. So you got no control.

Lauren:
That topic is not covered ever publicly, I feel like, on podcasts.

Jason:
They really don’t want to give the reality that there’s a 50, 50 chance it’s not going to see the light of day.

Lauren:
You’ve watched a lot of podcasts and YouTube university as of late, that topics not brought up guys. But what he’s talking about is, it’s very common that you’re going to get a property under contract and it’s not going to work out because it fails inspection, essentially. When you get to the due diligence part, when you inspect the home, the home has more issues than you realize. And if you are smart and you had a bulletproof contract that has an inspection contingency, you let the seller know, “Listen, this isn’t passing our inspection contingency.” And the sellers got two options. The seller can reduce their price or the seller can walk away. And a lot of times the seller walks away and then they come right back.

Jason:
Yeah.

Lauren:
So I don’t have exact numbers on that, but that’s very common too. So follow up with that seller,” Hey, I know it fell out, but are you maybe thinking of coming down on price now that we know where we’re at, where we need to be at, can we do this?”

Jason:
And I think even deals with pricing wise where you shot yourself in the foot and might’ve price it high. Case in point, I actually had to pull out of a deal because I had gotten it on the contract and I sent a photographer to go out to take some pictures and lo and behold, it was the rainiest day. So when I get the pictures and he sent me a couple of videos, Lauren, literally half the property was submerged underwater and the ceilings were bowed down. I thought to myself, “Oh my God, no wonder why there was a little bit of negotiating. No wonder why he liked my offer.” And I told him, I said, “I’m sorry, we’re going to have to pull out.”
And he came back to me and he said, “Well, would you consider it for X amount?” I said, “We could talk about it in a month, but right now.” So it’s funny that you even mentioned that there’s going to be deals that you’re going to have to pass on besides the fact that there’s going to be deals that fall, hat just don’t make it to the end.

Lauren:
But don’t give up. If it’s not going to work out at that price, always say, “Well, what price will it work out for?” So maybe ask her buyers, “Hey guys, you guys all looked at this, I know this pricing is a little off, but what would you realistically pay for this deal?” And then go approach the seller and have that discussion because it’s not a closed door yet. The seller now has it in their head that they want to sell. They’re ready, they got excited. But again, with my script, we say this is a very likely scenarios. We’re going to come look at it. And there might be a chance that the property isn’t in the condition that we anticipated because perspective with that is funny. Sellers, it’s interesting what a remodeled house sounds like to sellers. Some sellers remodeled means…

Jason:
15 years ago that they remodeled.

Lauren:
So then that’s very new, even 25 years ago, it depends on the area you’re in. So in the area that we’re in, remodel means they painted over the old 50 year old cabinets, that needs remodel to them. So we have these conversations. I have this dialogue with sellers and say, “When we really inspect it, we’re going to know where we’re at, but don’t worry because we’re going to keep you updated along the way. And we’re going to get somebody in there in the next three, four days, whenever you can let us in to do this inspection. So don’t worry. We’re not going to leave you hanging 60 days. It’s next week. How’s Wednesday, an we get someone in there??

Jason:
[inaudible 00:27:17] Lauren, and I don’t mean to interrupt you, I think one of the key things is you have to be speaking to the seller once a week. You have to have a conversation. If you ghost them the second week and they’re calling you, you did something wrong. If they’re calling you to ask you, “What’s going on?” You probably already passed some sort of inspection period that they’re like, “Yeah.” It’s easier to soften the blow on a price reduction or delay of closing when you’ve maintained the rapport, the relationship with them like that.

Lauren:
Yeah. That is some good stuff. And that’s not just from wholesaling. You got that from your previous past life is being a realtor. That’s really good advice you guys, please listen to that and take that seriously. Well, gosh, Jason, this has been awesome. And I know everybody got a lot out of this episode. I really, really appreciate your transparency.

Jason:
Thank you. Let me tell you a Lauren, thank you so much for the motivation and the kind words and the wisdom because anyone that’s listening, everything that you’ve outlined in the course has been so transparent and so accurate that if it hasn’t been accurate, it’s because you’re not following the steps in the course and you’re probably not doing the deals, because if you’re doing the deals, you’ve left no stone unturned. That’s for sure. So I appreciate it as well.

Lauren:
Thank you. Thank you. Well guys, I hope you enjoyed that episode. And if you are thinking about going virtual, check out www.virtualinvestingmastery.com. It’s the coaching program that Jason is in currently. And we’ve been having a lot of fun. We have a really great group. And most importantly, we have a lot of students who have found a ton of success leaving their backyard and going virtual. So again, www.virtualinvestingmastery.com. And if you guys want to find me on Instagram, I am @thismonthflips. That’s my handle. And Jason, how can anyone, if they maybe want to get ahold of you, are you on Instagram as well?

Jason:
I knew you’d ask me.

Lauren:
All right. What’s your handle?

Jason:
My handle Jason.Quero, Q-U-E-R-O, my last name, real estate broker.

Lauren:
Nice. All right guys, we’ll put that in the show notes and again, thank you so much for listening. Jason, thank you so much. And we will see you next time everybody, take care.

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